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Why Lean Startup Methodology Is Good For You

4 Mins read

Let’s revisit why lean startup methodology is good for you. Lean startup methodology is rooted in the notion that with a focus on efficiency and customer satisfaction, businesses can grow rapidly during their early years. The approach uses digital tools to provide an efficient way for entrepreneurs to develop, test and launch new ideas. At first glance, this seems like child’s play. However, it can be quite difficult when you are stuck on how to get started with the Lean Start-up Methodology.

Why Lean start up methodology Is good for you

Lean start-up aims to identify and eliminate unnecessary steps, thereby achieving immediate gains in profitability. With time and experience, companies will use their learnings to evolve the process for future projects. This can help to improve the bottom line or increase early customer engagement rates.

1) The start-up is quick and cheap:

Identify a real need, then develop a solution based on it using a lean approach (e.g., build one-of-a-kind prototypes, test with customers while they are experiencing the problem). This enables entrepreneurs to quickly validate the business idea in front of potential customers and investors.

2) The start-up is customer-focused and innovative:

The lean approach combines customer feedback with continuous iteration, thereby accelerating learning and efficiency. As a result, the entrepreneur can quickly adjust to market conditions.

3) The start-up is adaptive and pragmatic:

Instead of focusing on a detailed business model or blueprint, entrepreneurs use a clear vision or mission statement to develop their idea without being distracted by the need to have a business plan in place first.

4) The start-up is open and transparent:

In order for success to be achieved, performance must be measured against key metrics for each process at each stage of development (e.g., set up an analytics dashboard that captures real-time data).

5) The start-up is collaborative:

By communicating openly with peers, entrepreneurs learn from each other’s successes and failures. In addition, open communication can improve the chances of early customer engagement.

The Plan

Once you have heard the Lean Startup Mantra and have come up with a solid plan, you can start your business. There are five steps in the Lean Startup process, each of which is discussed in detail later on.

The Customer Development Phase: Identifying a Need and Developing a Solution

Here in this phase, you need to identify early adopters and their needs. You may also have to find a business model in which you can monetize your product.

The first step is to generate a list of ideas. The business plan you created during the prior planning phase will help with this stage. Go back and take a look at this important document. It will provide an ideal starting point.

You can then further refine the ideas generated during your earlier planning phase by breaking them down into smaller pieces, one by one until you can work out what individual projects would comprise the minimum viable product (MVP). This is likely to be the basis for getting feedback from customers in the next phase of your startup’s development.

The Validation Phase: Test to Learn

It is in this stage that you test your product with customers. For this test to be successful, you need to ensure that it addresses the real problems and issues being faced by your targeted market.

Startups are constantly thinking about new inventions, and in this phase of your startup’s development, it would be appropriate for you to focus on a single issue or problem before deciding what type of testing method would work best. Take a look at our Innovation page for more information on how to conduct focus groups at home or in the office.

You will find the Lean Start-Up Method very helpful while conducting your validation phase.

The Co-creation Phase: Design Innovations with Customers

In this stage, you will be getting feedback from your customers to further develop your ideas. In order to make the most of this stage, it is important that you understand the customer’s needs and the extent to which they are likely to engage with your idea.

During this stage of your startup’s development, you will be developing a sound understanding of exactly what customers need. Then, while keeping up with the changing demands of your target market, you will have an opportunity to decide which features can be incorporated in order to make them more willing to purchase what it is that you are selling.

The Launch Phase: Leverage the Momentum

During this stage, your goal is to get as much feedback from customers as possible. You can then use that feedback to increase the effectiveness of your product or service.

You will also have an opportunity to create a buzz around your startup, thereby further increasing its chance for success. In addition, you will be able to measure the impact of various marketing initiatives used during this stage of development.

The Growth Measurement Phase: Keep Learning and Improving

Here in this phase, it is important for startups to develop a growth dashboard that provides real-time insights into day-to-day operations and overall growth.

The Lean Startup Method will assist you in meeting this goal by providing you with a clear idea of your most effective marketing initiatives to date. It will also provide an opportunity for you to measure the impact of each and every marketing initiative used during this stage of development.

In this phase, it is also important that startups track the progress of their progress against key metrics in terms of growth, customer acquisition and retention.

Conclusion

Thus the methodology described above, allows companies to build the minimum viable product, which is most relevant when creating a new innovative solution. This can be really helpful both for entrepreneurs and investors.

If your company is looking to grow rapidly in a short period of time, this methodology will allow you to do so. However, as with any business development process, it is important to make sure you have clear goals in mind and that you implement the lean startup methodologies with care.

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